What’s the difference between buildings insurance and contents insurance?

If you reside or do business in El Paso, Texas, you’re likely enjoying over 300 days of sunshine. Despite the warm glow of the sun, like any other city, accidents happen. It, therefore, might be prudent to speak with an expert insurance agent, as you don’t want to get caught with insufficient insurance.

Coverage For The Structure

Typically, buildings insurance covers the actual building, as well as foundations and permanent fixtures to buildings. This means that furnaces, water heaters and central air conditioning units are covered. If the buildings have permanently installed carpets, bookcases and cabinets, these items are also covered. If you own a building, you absolutely want to make sure you have buildings insurance. If you’re the lessee, however, coverage for your personal items might be all you need.

Coverage For What’s Inside

Contents insurance provide coverage for your personal items, and often includes items that aren’t permanently attached to a building. For example, portable microwaves, furniture and clothing come under contents insurance. If you have a portable air conditioner to stave off El Paso’s warm summers, don’t worry, your air conditioner is covered too. You also get coverage for freezers and the food in the freezers, along with electronic equipment and artwork. If you rent the property, need this protection.

When You Need Both

If you’re not renting the property, you need both building and content insurance. Don’t assume that you have adequate coverage because you have one or the other. Each coverage type has its purpose. Also, if you have a home-based business, don’t assume you’re fully covered under your homeowner’s insurance policy. These policies often don’t cover losses associated with your business, such as damage to your equipment and critical records.

Bottom Line

The standard homeowners insurance policy covers the building, its structure and the contents. If you own a business, you might not need coverage for both the building and its content. This depends on whether you own or lease the building. Adequate insurance equals peace of mind and protection from financial devastation. Visit our website to compare quotes online, or give us a call. A friendly insurance agent will make sure you have enough coverage for your building and its content.